Place of removal and service tax credit

[srinivasan.K kuppuswamy]

Dear Sir,

In the 2014-15 budget the place of removal has been specifically mentioned by amending the Cenvat Credit Rules 2004 vide notification Number 21/2014 CE (NT) dt 11.07.2014.

Cenvat Credit Rules 2004 from 11.07.2014

„(qa) “place of removal” means-

(i) a factory or any other place or premises of production or manufacture of the excisable goods;

(ii) a warehouse or any other place or premises wherein the excisable goods have been permitted to be deposited without payment of duty;

(iii) a depot, premises of a consignment agent or any other place or premises from where the excisable goods are to be sold after their clearance from the factory,

from where such goods are removed;‟

On the above we feel the service tax paid on export services for the export made from our

factory premises is post manufacturing activitity services. Weill we eligible for service tax credit or we have to go for refund under Notification 41/2012 .

Request your valuable advice.

Regards

K Srinivasan

AI Summary

Service tax credit on export services allowed up to port of export per 2014 Cenvat Credit Rules amendment. A query was raised regarding the eligibility for service tax credit on export services following the 2014 amendment to the Cenvat Credit Rules, which defined 'place of removal.' The inquirer asked if service tax paid on export services from the factory could be credited or if a refund under Notification 41/2012 was necessary. The response clarified that, per CESTAT rulings, the port of export is considered the place of removal for excisable goods, allowing the service tax paid on services up to the port of export to be claimed as credit.